Understanding the Torrid 401(k) Plan in Divorce
When couples divorce, retirement accounts like 401(k)s can be among the most valuable marital assets they divide. If you or your spouse participated in the Torrid 401(k) Plan, you’ll need a Qualified Domestic Relations Order (QDRO) to properly split the account. A QDRO is a court order that directs the plan administrator to divide retirement benefits between the plan participant and the alternate payee (typically the ex-spouse) as part of the marital property division.
Because the Torrid 401(k) Plan is a 401(k)-type retirement benefit, it has features that must be addressed carefully during divorce: employer contributions, vesting schedules, loan balances, Roth and traditional sub-accounts, and possible restrictions in plan documentation. Getting the QDRO right can prevent costly mistakes. At PeacockQDROs, that’s exactly what we’re known for—completing the entire QDRO process, from drafting to follow-up with the plan administrator.
Plan-Specific Details for the Torrid 401(k) Plan
Here are the known details about the Torrid 401(k) Plan that you’ll need when preparing your QDRO:
- Plan Name: Torrid 401(k) Plan
- Sponsor: Torrid LLC
- Industry: General Business
- Organization Type: Business Entity
- Address: 18501 E. SAN JOSE AVE.
- Status: Active
- Plan Year: Unknown to Unknown
- Effective Date: Unknown
- EIN and Plan Number: Required to complete QDRO (not currently provided)
Because Torrid LLC is a business entity in a general business setting, it’s typical for their 401(k) to include both traditional pre-tax contributions and after-tax Roth options, employer matching, and possibly profit-sharing contributions.
How a QDRO Divides the Torrid 401(k) Plan
Employee and Employer Contributions
A 401(k) like the Torrid 401(k) Plan distinguishes between amounts contributed by the employee (participant) and amounts contributed by the employer. In divorce, both types of contributions are marital property—if they were earned during the marriage timeframe—but there may be limitations based on vesting.
Employer contributions are often subject to a vesting schedule. If the participant hasn’t fully vested at the time of divorce, a portion of the employer match may not be included in the marital estate. Your QDRO should account for this by either:
- Excluding unvested amounts outright
- Including future vesting language so the alternate payee can receive additional benefit if vesting occurs later
Loan Balances and Repayment
If the participant has an outstanding loan against their Torrid 401(k) Plan, this can complicate the QDRO process. Here’s what you need to know:
- Loan balances reduce the account balance available to divide
- Loans are individual liabilities and generally are not divided between spouses
- The QDRO can specify whether division should occur before or after deducting the loan balance
This choice can affect the share each party receives. Always confirm how the plan administrator processes loans during QDRO division before drafting.
Traditional and Roth Sub-Accounts
Most modern 401(k) plans, including the Torrid 401(k) Plan, offer both pre-tax (traditional) and after-tax (Roth) account options. These accounts are treated differently for tax purposes, and a well-drafted QDRO should account for that:
- Specify whether the alternate payee receives a proportional share of both types, or from one sub-account only
- Be clear about the pretax and post-tax breakdown to avoid unintended tax consequences
- Confirm whether the plan allows direct transfer into separate Roth or traditional IRA accounts for alternate payees
If your QDRO doesn’t address Roth vs. traditional distributions clearly, it could cause delays or incorrect transfers by the plan administrator.
Common Pitfalls in QDROs for the Torrid 401(k) Plan
Drafting a QDRO involves more than just splitting numbers on paper. From incorrect vesting assumptions to missing loan balance details, these common mistakes can cost time and money. Get familiar with these common QDRO errors in our detailed guide.
Why PeacockQDROs is Different
At PeacockQDROs, we’ve completed thousands of QDROs from start to finish. That means we don’t just draft the order and leave you to figure out the rest. We handle the drafting, preapproval (if applicable), court filing, submission, and follow-up with the plan administrator. That’s what sets us apart from firms that only prepare the document and hand it off to you.
We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. The rules are complex—especially when a 401(k) like the Torrid 401(k) Plan has multiple account types, employer match schedules, and plan-specific requirements. Working with seasoned legal professionals ensures your interests are protected.
Don’t forget: a well-structured QDRO also minimizes the waiting time. Learn about the five key timing factors that affect how quickly your QDRO can be completed.
Documentation Required for a Torrid 401(k) Plan QDRO
To draft and process a QDRO correctly, you’ll need the following:
- Full legal names and contact info for both parties
- Social Security numbers (submitted via secure means)
- Exact name of the plan: Torrid 401(k) Plan
- Name of plan sponsor: Torrid LLC
- Plan’s EIN and Plan Number (required from plan administrator)
- A copy of the plan’s Summary Plan Description (SPD) if available
We will confirm with Torrid LLC’s plan administrator to gather any outstanding data needed to finalize the QDRO.
Key Legal Considerations
Because this is a 401(k) plan with an employer match, it is governed under ERISA (the Employee Retirement Income Security Act). Timing matters. If the QDRO is not entered and recognized by the plan administrator before benefits are distributed to the participant, the alternate payee may lose their right to a share.
Also, make sure the QDRO contains survivor benefit clauses to protect the alternate payee if the participant dies before effective division of the account. A thoughtful QDRO anticipates future complications—our legal team does this regularly.
Taking Action
If your divorce was in California, New York, New Jersey, Connecticut, Kansas, Missouri, Iowa, or North Dakota, and you have questions about qualified domestic relations orders or dividing retirement assets like the Torrid 401(k) Plan, contact PeacockQDROs. We specialize in QDROs and have successfully processed thousands of orders from start to finish.
Get the answers you need—explore our QDRO resources or reach out for personalized help if you’re in one of our service states.